“When solving problems, dig at the roots instead of just hacking at the leaves”
Anthony J. D’Angelo
Traditional Thinking vs Lean Thinking: Which Approach Wins?
The term lean thinking transformation is used to describe all the tactical, strategic, and operational improvements that an organization undergoes for creating more value for its customers. The process of lean transformation includes the introduction of changes in an organization for maximizing the flow of value that is produced for the customers.
Traditional Thinking
Traditional manufacturing approaches were developed during the age of mass production which concentrated on the economy of scale & machine utilization. It generated the idea that if the machine was idle, it was wasting money, so it was kept operating no matter what. Traditional organizations used to maintain big inventories in expectation of customer orders to attain consumer satisfaction.
They held this by keeping a machine running with a particular setup for as long as possible to decrease the unit cost and the traditional production system is driven by a sales forecast.
This approach of traditional manufacturing system is referred to as “Batch & Queue” as parts were made in batches & upon completion, they were shifted & placed into a queue where they had to wait for the availability of the next operation. The fundamental issue with this exercise is machine set-up times outline the duration of the product run time.
Long set-up times do not permit for smaller runs because it would be regarded as hilarious to take 5 hours to set up a machine & only run it for an hour.
Cons of Traditional Manufacturing:
A product experiences an amalgam of 3 activities during a process:
- Shift from one location to the next.
- Being processed.
- Waiting for the next process.
Studies have shown that in a traditional business, the total time is taken for a traditional production to go through the manufacturing process, is being shifted or waiting 90% of the time & is only being processed for 10% of the time.
- A bigger machine setup time results in a higher percentage of lost production time, as when the machine is down, nothing is produced.
- Difficulty trying to schedule the job because of the time a product is simply waiting for the next process to become available & set-up times.
- Product quality suffers due to the fact if elements in a batch are made inaccurately, the problem will not generally be in the limelight until the next operation starts to work on them. This results in a higher level of rework, which is costly & ties up valuable resources.
Lean Thinking
Lean Thinking is an organized approach that identifies & eliminates all types of waste that don’t add any value to the process. Performing this will allow more flexibility & smaller batches of parts to be made. It results in shorter lead times, reduced inventory, & allows more persistent deliveries to the customer. The lean thinking core principles help in the creation of an effective and efficient organization.
The primary concept of Lean is to boost customer value while reducing waste. A huge benefit of lean thinking is that you will deliver the perfect value to your customers but with less work, through a perfect value creation process that has zero waste. This is a reversal from the traditional focus on the economy of scale. During the process of product creation flow, all activities are categorized as “Value Added” or “non-value Added.” By knowing which part of the process is a “Non-value added” activity, you can eliminate or reduce it.
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Pros of Lean Thinking
1. Improving Productivity & Efficiency
When employees are focused on delivering value, they will be more productive & efficient, because they won’t be distracted by uncertain activities.
2. Focus
By making use of Lean methodology, you will be capable to lower waste activities. So, your workforce will be focused on activities that bring value.
3. Better Use of Resources
When your manufacturing is primarily based totally on real demand, you may be capable to use only as many resources as needed.
Also, See- Supply Chain Transformation Strategy: A Key to Success
Leader’s Tip:
Promote an innovative, empowering, and cross-functional collaborative culture to support lean thinking.
Traditional Thinking vs. Lean Thinking
In Traditional thinking, the traditional production system is driven by a sales forecast which is referred to as Push System.
In Lean, lean thinking drives production by customer demand, and items are only produced when an order is placed which is referred to as Pull System.
Traditional: Work in process (WIP) is taken into consideration as a regular part of operations.
Lean: WIP is a signal that a procedure requires to be enhanced & is taken into consideration a type of waste that should be reduced or eliminated.
Traditional: In the traditional production system, problems are considered as simply that, problems.
Lean: Problems are regarded as possibilities for development frequently thru root cause analysis.
Traditional: Improve system (ignoring all the forms of waste within the process).
Lean: Improve system via means of 1. Removing waste 2. Improving present processes.
Traditional: If a process is operating don’t fix it.
Lean: The lean thinking core principles always search for methods to enhance processes.
Traditional: Focuses on training & depends on people to not make mistake.
Lean: Focuses on building processes that are error-proofed (so that a person can’t make a mistake, or it would be difficult to do so).
Traditional: In traditional production, management is the key driving force of change.
Lean: Everyone is empowered, trained in the core principles of lean thinking & motivated to look for ways to improve processes.
Traditional: Systems think (perspectives the business enterprise as a whole), regularly ignoring or not able to look at the vast possibilities for improvement.
Lean: Views the business enterprise as a chain of interrelated procedures that may and need to be improved.
Traditional: Standardized work (human beings performing similar tasks in a similar way) most effective exists in files like SOPs, not often in reality.
Lean: In Lean leadership, everyone performs the similar task in a precisely similar way till a better manner is discovered; then everyone performs the task in a new & improved way.
What are the 5 principles of lean thinking?
The five principles of lean thinking are:
Value: The first principle of lean thinking is to focus on creating value for the customer. This involves understanding what the customer wants and needs, and then delivering products or services that meet those needs. By focusing on value, companies can avoid waste and create products that customers will be willing to pay for.
Value stream: The second principle of lean thinking is to identify the value stream, or the series of steps that are required to deliver a product or service. This involves mapping out the flow of materials and information from the supplier to the customer, and identifying any areas of waste or inefficiency.
Flow: The third principle of lean thinking is to create a continuous flow of work, where products or services move through the value stream without interruption. This involves eliminating bottlenecks and reducing cycle times, so that products can be delivered to the customer more quickly and efficiently.
Pull: The fourth principle of lean thinking is to use a pull-based system, where products or services are produced in response to customer demand. This involves creating a system where work is only done when there is demand, rather than producing products in anticipation of demand.
Perfection: The fifth principle of lean thinking is to strive for perfection, or the continuous improvement of the value stream. This involves eliminating waste and inefficiencies, and continually improving processes to deliver higher levels of value to the customer.
Overall, these five principles of lean thinking are designed to help companies eliminate waste and improve efficiency, while also delivering greater value to the customer. By focusing on these principles, companies can create a more streamlined and efficient supply chain that is better able to respond to customer needs and deliver products more quickly and efficiently.
What are the six Ms in lean?
The six Ms in lean are the key factors that need to be considered and optimized to achieve a lean process. They are:
Manpower: This refers to the people who are involved in the process. It is important to ensure that they have the right skills, training, and experience to carry out their tasks effectively.
Methods: This refers to the specific procedures and steps used to carry out the process. It is important to review and optimize these methods to eliminate waste and improve efficiency.
Machines: This refers to the equipment, tools, and technology used in the process. It is important to ensure that they are well-maintained, reliable, and efficient.
Materials: This refers to the raw materials, components, and supplies used in the process. It is important to ensure that they are of high quality, readily available, and used efficiently.
Measurements: This refers to the data and metrics used to measure the performance of the process. It is important to establish clear performance indicators and use them to continuously monitor and improve the process.
Mother Nature: This refers to the environment in which the process takes place. It is important to consider the impact of the process on the environment and take steps to minimize any negative effects.
What are lean tools?
Lean tools refer to a set of methodologies and techniques used to achieve the principles of lean manufacturing, which aims to eliminate waste and increase efficiency in a manufacturing or production process. Some common lean tools include Value Stream Mapping (VSM), Kaizen, 5S, Just-in-Time (JIT), Total Productive Maintenance (TPM), and Poka-Yoke.
These tools are designed to identify areas of waste, reduce lead time, improve quality, and optimize workflow, among other things. The use of lean tools is not limited to manufacturing; they can also be applied in other industries, such as healthcare, hospitality, and service industries, to improve efficiency and enhance customer value.
Leader’s Tip:
To drive process optimisation, promote the usage of lean tools and processes like value stream mapping and Kaizen.
Conclusion
The transformational framework of lean thinking seeks to deliver a new way to think about how to organize human activities for providing more benefits to society and value to individuals while also removing waste from processes. Whereas, traditional thinking takes the perspective of business enterprise as a whole, as it regularly dismisses or is not able to look for the huge possibilities of modifications.
Frequently Asked Questions
How is lean different than traditional management?
In Traditional thinking, the traditional production system is driven by a sales forecast which is referred to as Push System. In Lean, lean thinking drives production by customer demand, and items are only produced when an order is placed which is referred to as Pull System.
Traditional: Work in process (WIP) is taken into consideration as a regular part of operations. Lean: WIP is a signal that a procedure requires to be enhanced & is taken into consideration a type of waste that should be reduced or eliminated.
What is meant by lean thinking
Lean Thinking is an organized approach that identifies & eliminates all types of waste that don’t add any value to the process. Performing this will allow more flexibility & smaller batches of parts to be made. It results in shorter lead times, reduced inventory, & allows more persistent deliveries to the customer. The lean thinking core principles help in the creation of an effective and efficient organization.
What is the difference between lean and Six Sigma?
Lean and Six Sigma are two separate methodologies used to improve business processes. Lean focuses on identifying and eliminating waste in a process, while Six Sigma aims to reduce variability and defects in a process. Both methodologies can be used together to create a more efficient and effective process.
Can lean principles be applied outside of manufacturing?
Yes, lean principles can be applied to any industry or process that involves the creation and delivery of goods or services. The principles of lean can help organizations streamline their processes, reduce waste, and improve efficiency, regardless of the industry they operate in.
Key Takeaways:
- Lean thinking promotes a culture of continual improvement and agility, whereas traditional thinking may result in complacency and inefficiency.
- Lean thinking emphasises the value of the customer, the elimination of waste, and the optimisation of end-to-end processes for increased productivity and client pleasure.
- A change in perspective, strong leadership backing, and a dedication to continuous learning and development are necessary for the adoption of lean principles.